Bitcoin tried to take down $60,000 just yesterday morning but was stopped in its tracks and pushed south to a monthly low of under $56,000.
The altcoins have followed suit with substantial declines as ETH is down to $2,400, while BNB is at $510.
BTC’s Decline Continues
It’s safe to say that Bitcoin has seen better days. In fact, it tried to take down $65,000 just last Monday, but its inability to do so resulted in continuous price declines. At first, BTC slumped to $58,000 on Wednesday but recovered some ground by the end of the week and even challenged $61,000 on Thursday.
However, it failed there as well and stood below $60,000 during the weekend. Monday began with a slight retracement toward $57,000 but the bulls managed to intervene and reversed the asset’s trajectory.
In fact, bitcoin shot up to $59,600 on Tuesday morning, but that was its best shot. It lost a grand almost immediately, but the landscape worsened earlier today when it plunged to a monthly low of $55,600 (on Bitstamp), leaving millions in liquidation.
It has recovered about a grand since then, but it’s still 4% down on the day. Its market cap has slumped to $1.120 trillion, and its dominance over the alts is under 54% on CG.
TON in a Downfall
As it typically happens in such situations, the altcoins have turned red as well. Ethereum is down to $2,400 after a 5% daily drop, BNB is at $510 following a similar decline, while XRP, SOL, DOGE, ADA, AVAX, and SHIB have produced slightly less painful retracements.
However, Toncoin has dumped the most from the larger caps. The asset has tumbled by more than 11% in the past day alone and now struggles at $4.65.
The lower- and mid-cap alts are also in a knockdown state. As such, the total crypto market cap has plunged by about $100 billion since yesterday’s peak and is under $2.1 trillion on CG now.
Final Thoughts
The recent downturn in Bitcoin and the broader cryptocurrency market highlights the volatility that continues to characterize digital assets. Bitcoin’s struggle to maintain its momentum after attempting to break the $60,000 barrier and its subsequent drop to a monthly low of $55,600 underscores the unpredictable nature of the market.
This sharp decline not only resulted in substantial liquidations but also dented Bitcoin’s market capitalization and dominance, reflecting a broader loss of confidence among investors. The rapid price movements within such a short time frame illustrate how even minor resistance levels can trigger significant market reactions, leading to widespread sell-offs.
The ripple effect on altcoins further emphasizes the interconnectedness of the crypto market. As Bitcoin tumbled, major altcoins like Ethereum, Binance Coin, and others also faced significant losses. Particularly noteworthy is the steep decline in Toncoin, which suffered an 11% drop, indicating that smaller and mid-cap altcoins are especially vulnerable during periods of Bitcoin instability.
The overall $100 billion plunge in the total crypto market cap reflects the broader market’s fragility, where investor sentiment can quickly turn negative, leading to substantial capital outflows. This scenario serves as a reminder of the risks inherent in the crypto space and the need for investors to be prepared for rapid market shifts.
Article Source: CryptoPotato
